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Charles Burdett's avatar

Now I want to learn how to play Bridge.

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Minh Tu's avatar

Stock investing is not really investing. Basically a company offers some shares at $10 for example. The investment banker gives the company $8.50 and sells those shares to the public at $10 or more. Whether the stock goes up or down, the company only gets 8.50 to buy equipment, hire more people, e.g. invest in their business. Now if the stock goes to $1 it would be difficult for the company to sell shares next time vs $100 or $1000. Amazon stock lost up to 90% of their value in the early 2000s. The difference between Enron and Amazon is the fact that Amazon recovers later on and goes way way higher vs Enron going to zero. But you have to be a time traveler to know this.

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